MrCog Has 18 Hours Per Day to Divide Between Labor

question 26

Multiple Choice

Mr.Cog has 18 hours per day to divide between labor and leisure.If he has a nonlabor income of 34 dollars per day and a wage rate of 17 dollars per hour, he will choose a combination of labor and leisure that allows him to spend

• A)160 dollars per day on consumption.
• B)340 dollars per day on consumption.
• C)187 dollars per day on consumption.
• D)170 dollars per day on consumption.
• E)255 dollars per day on consumption.

---

Definitions:

Supply for Heating Oil

The total availability of heating oil in the market, influenced by production levels, reserves, and importation.

Inferior Goods

Inferior goods are products whose demand decreases as consumer income rises, opposite to normal goods.

Demand

The amount of a product or service that buyers are prepared and capable of buying at different price levels over a specific time frame.

Income

Earnings acquired on a consistent basis through employment or investments.